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Please help me calculate PV factor and Net Present Value for these, thank you! a. A new operating system for an existing machine is expected

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Please help me calculate PV factor and Net Present Value for these, thank you!

a. A new operating system for an existing machine is expected to cost $531,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,000. b. A machine costs $390,000, has a $22,000 salvage value, is expected to last eight years, and will generate an after-tax income of $65,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B A new operating system for an existing machine is expected to cost $531,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $15,000. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Present Value $ 1,019,551 Annual cash flow 4.2305 X Present Value of an Annuity of 1 Present Value of 1 241,000 15,000 Residual value 0.0535 X 803 Present value of cash inflows Immediate cash outflows $ 1,020,354 531,000 $ 496,569 Net present value Required A Required B > X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B A machine costs $390,000, has a $22,000 salvage value, is expected to last eight years, and will generate an after-tax income of $65,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.) Cash Flow Select Chart Amount PV Factor Annual cash flow x 5.1461 x $ Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows 111,000 22,000 Present Value 571,217 9,546 580,763 Residual value x 0.4339 X = $ Immediate cash outflows 390,000 19,762 X Net present value $ ! Required information (The following information applies to the questions displayed below.) Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a five-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a four-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project z $380,000 $ 304,000 Sales Expenses Direct materials Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (32%) Net income 53,200 76,000 136,800 27,000 293,000 87,000 27,840 $ 59,160 38,000 45,600 136,800 27,000 247,400 56,600 18,112 $ 38, 488 4. Determine each project's net present value using 9% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n = 5 i = 9% Select Chart Amount PV Factor = Present Value Present Value of an Annuity of 1 124,160 X 3.8896 = $ 482,933 Present value of cash inflows $ 482,933 Present value of cash outflows 325,000 Net present value $ 807,933 X

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